Shell Sells US Deepwater Package

Shell announced August 29 it has agreed to sell its interest in US Gulf of Mexico Green Canyon Blocks 114, 158, 202 and 248, referred to as the Brutus/Glider assets, to Houston-based independent EnVen Energy Corporation for $425mn cash plus royalty interests. The transaction is expected to close in October.

The Brutus/Glider assets include the Brutus Tension Leg Platform (TLP), the Glider subsea production system, and the oil and gas lateral pipelines used to evacuate production from the TLP.  The Brutus/Glider assets have a combined current production estimate of some 25,000 barrels of oil equivalent/day.

The Anglo-Dutch major said the deal marked progress towards its target of divesting more than $30bn of assets in the next three years, following its takeover of BG this February. At its 2Q results on July 28, Shell said that its divestments were on target this year to reach $6bn-$8bn, of which $1.5bn then was already agreed, its stake in Japanese refining company Shell Showa, adding that four other planned sales would bring it up to its year-end target. 

Mark Smedley